Your script looks fine so I suspect the issue is either security (you don't have rights), or more likely nested folder names - so if you are trying to create a folder:
c:\mainfolder\subfolder1\subsubfolder
And you don't have a "c:\mainfolder\subfolder1" then it will fail with an error "path not found".
The other issue might be characters that you can't have in a folder name:
< > : " / \ | ? *
I would suggest doing a search and replace on the text file for any of these.
You can do what you want in a simple batch file though, because the MD command (or MKDIR) from the command prompt will create any intermediate folders. Here's a 2 line batch file that'll do what you want:
Code:
@echo off
FOR /F "delims=¬" %%f IN ("C:\Users\Susan\Documents\iMacros\Macros\file.txt") DO md "%%f"
Save this text to a file with a .BAT extension and double-click it.